Revenue Beat: SilverCrest Metals Inc. Exceeded Revenue Forecasts By 37% And Analysts Are Updating Their Estimates

SilverCrest Metals Inc. (TSE:SIL) just released its third-quarter report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of US$65m beating expectations by 37% and earnings per share (EPS) of US$0.20, an impressive 23%ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for SilverCrest Metals

Taking into account the latest results, SilverCrest Metals' five analysts currently expect revenues in 2024 to be US$227.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 22% to US$0.46 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$224.0m and earnings per share (EPS) of US$0.45 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$9.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SilverCrest Metals analyst has a price target of CA$10.50 per share, while the most pessimistic values it at CA$7.75. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that SilverCrest Metals' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 99% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SilverCrest Metals.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CA$9.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on SilverCrest Metals. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SilverCrest Metals going out to 2025, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for SilverCrest Metals you should be aware of, and 1 of them makes us a bit uncomfortable.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.